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``SEC. 1303. STATE ALLOCATIONS.
- ``(a) State Allocations.--Each State (other than the Commonwealth of Puerto Rico) is entitled to receive under this part, for each fiscal year, an amount equal to--
- ``(1) the sum of the estimated number of migratory children aged three through 21 who reside in the State full time and the full-time equivalent of the estimated number of migratory children aged three through 21 who reside in the State part time, as determined in accordance with subsection (e); multiplied by
- ``(2) 40 percent of the average per-pupil expenditure in the State, except that the amount determined under this paragraph shall not be less than 32 percent, nor more than 48 percent, of the average expenditure per pupil in the United States.
- ``(b) Allocation to Puerto Rico.--For each fiscal year, the amount for which the Commonwealth of Puerto Rico is eligible under this section shall be equal to--
- ``(1) the number of migratory children in Puerto Rico, determined under subsection (a)(1); multiplied by
- ``(2) the product of--
- ``(A) the percentage that the average per-pupil expenditure in Puerto Rico is of the lowest average per-pupil expenditure of any of the 50 States; and
- ``(B) 32 percent of the average per-pupil expenditure in the United States.
- ``(c) Ratable Reductions; Reallocations.--
- ``(1) In general.--
- ``(A) If, after the Secretary reserves funds under section 1308(c), the amount appropriated to carry out this part for any fiscal year is insufficient to pay in full the amounts for which all States are eligible, the Secretary shall ratably reduce each such amount.
- ``(B) If additional funds become available for making such payments for any fiscal year, the Secretary shall allocate such funds to States in amounts that the Secretary determines will best carry out the purpose of this part.
- ``(2) Special rule.--
- ``(A) The Secretary shall further reduce the amount of any grant to a State under this part for any fiscal year if the Secretary determines, based on available information on the numbers and needs of migratory children in the State and the program proposed by the State to address such needs, that such amount exceeds the amount required under section 1304.
- ``(B) The Secretary shall reallocate such excess funds to other States whose grants under this part would otherwise be insufficient to provide an appropriate level of services to migratory children, in such amounts as the Secretary determines are appropriate.
- ``(d) Consortium Arrangements.--
- ``(1) In general.--In the case of a State that receives a grant of $1,000,000 or less under this section, the Secretary shall consult with the State educational agency to determine whether consortium arrangements with another State or other appropriate entity would result in delivery of services in a more effective and efficient manner.
- ``(2) Proposals.--Any State, regardless of the amount of such State's allocation, may submit a consortium arrangement to the Secretary for approval.
- ``(3) Approval.--The Secretary shall approve a consortium arrangement under paragraph (1) or (2) if the proposal demonstrates that the arrangement will--
- ``(A) reduce administrative costs or program function costs for State programs; and
- ``(B) make more funds available for direct services to add substantially to the welfare or educational attainment of children to be served under this part.
- ``(e) Determining Numbers of Eligible Children.--In order to determine the estimated number of migratory children residing in each State for purposes of this section, the Secretary shall--
- ``(1) use such information as the Secretary finds most accurately reflects the actual number of migratory children;
- ``(2) develop and implement a procedure for more accurately reflecting cost factors for different types of summer and intersession program designs;
- ``(3) adjust the full-time equivalent number of migratory children who reside in each State to take into account--
- ``(A) the special needs of those children participating in special programs provided under this part that operate during the summer and intersession periods; and
- ``(B) the additional costs of operating such programs; and
- ``(4) conduct an analysis of the options for adjusting the formula so as to better direct services to the child whose education has been interrupted.
SEC. 1302. PROGRAM AUTHORIZED.
SEC. 1304. STATE APPLICATIONS; SERVICES.